[Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (2000, Book I)]
[June 22, 2000]
[Pages 1222-1224]
[From the U.S. Government Publishing Office www.gpo.gov]



Letter to Congressional Leaders on Proposed Energy Policy Legislation
June 22, 2000

Dear Mr. Speaker:   (Dear Mr. Leader:)
    With so much attention focused on the recent spike in gasoline 
prices and OPEC's decision to increase production quotas, it is critical 
that we not lose sight of our nation's long-term energy needs. For seven 
years, my Administration has pursued a sound, comprehensive policy to 
address those needs. Regrettably, several key elements of this 
Administration's strategy have languished in Congress. In recent days, 
in fact, budget initiatives to strengthen our energy supply have 
suffered significant cuts, while some Members have advanced proposals 
that would seriously harm our environment in the name of energy 
security. I urge you to work closely with me to enact these critical 
energy proposals without further delay.

[[Page 1223]]

    I remain very concerned about high gasoline prices and find the 
situation in the Chicago/Milwaukee region particularly troubling. Last 
week, the Department of Energy (DOE) and the Environmental Protection 
Agency sent analysts to the region to explore the reasons for this price 
differential. While a number of factors appear to have contributed to 
the unusually high prices in the region, it is possible that they may 
not account for the entire increase in gas prices. The Federal Trade 
Commission has initiated an investigation of pricing practices in the 
region to determine if there is any unfair or illegal activity there. We 
look forward to the results of these investigations.
    Our concern about high gasoline prices in the short-term, however, 
cannot be allowed to distract us from addressing the long-term energy 
needs of our nation. My Administration has pursued an energy policy that 
provides a comprehensive and balanced approach to addressing the 
nation's energy needs. Unfortunately, Congress is considering proposals 
that are unnecessary and would do irrevocable harm to the environment, 
such as opening the Arctic refuge to drilling. Instead, Congress should 
act on the following key pieces of my energy policy.
    First, I have proposed a $4 billion package of tax incentives to 
encourage consumers to purchase more efficient cars, homes, and consumer 
products. Congress has failed to enact this package for over two years, 
even though these tax credits would save consumers money, protect our 
environment, and reduce our dependence on foreign oil. I also have 
proposed tax incentives to support renewable energy and the domestic oil 
industry, including the expensing of geological and geophysical expenses 
and delay rental payments.
    Second, over the past seven years I have repeatedly proposed 
significant increases in Federal investments in responsible domestic 
sources of energy, including most recently $1.4 billion in FY 2001 for 
high-priority items at DOE for energy efficiency, renewable energy, 
natural gas, and distributed power generation systems. Specific examples 
of these investments include more efficient technologies for our 
factories and homes, weatherization of low income households, 
technologies to produce biofuels and power from biomass, and the 
Partnership for a New Generation of Vehicles (PNGV)--a collaborative 
effort with automakers to deliver affordable cars that are three times 
more fuel efficient. Yet, Congress has failed to support these critical 
goals, approving only 12 percent of our proposed increases for energy 
efficiency and renewables over the past seven years. This year, the 
House has already cut DOE's FY 2001 budget for energy efficiency 
programs below last year's enacted level and has cut virtually all DOE 
funding for the PNGV program.
    Third, two years ago I submitted the Comprehensive Electricity 
Restructuring Act to Congress, to improve the operation and efficiency 
of the electricity sector. Congress to date has not enacted a 
comprehensive restructuring bill. Such legislation would improve the 
reliability of our electric power system, provide American consumers an 
estimated annual savings of $20 billion as a result of competition in 
electricity markets, and significantly reduce greenhouse gas emissions.
    Fourth, to address energy supply emergencies, I have called for 
reauthorization of the Strategic Petroleum Reserve (SPR), the 
establishment of a regional home heating oil reserve in the Northeast, 
and replenishment of the Low Income Home Energy Assistance Program 
emergency funds. Authorization for the SPR expired on March 31, 2000. It 
is critical that the SPR be reauthorized so that I have available all 
means to respond to any possible energy supply emergency. Further, the 
Department of Energy cannot establish a regional home heating oil 
reserve in the Northeast to respond to shortages of home heating oil 
until Congress either reauthorizes the SPR or separately passes 
legislation authorizing the creation of such a reserve with a 
responsible trigger. Because Congress has failed to act thus far, it 
will be virtually impossible to establish a home heating oil reserve in 
time for next winter.
    America needs a balanced, forward-looking energy policy based on the 
proposals that my Administration has put before Congress. We are 
committed to a responsible approach that will infuse our energy sector 
with both efficiency and competition; that values clean air, clean 
water, and healthy lands; and that seeks to cushion America against 
emergencies in the energy market. Congress should act on my proposals 
without further hesitation.
         Sincerely,

                                                      William J. Clinton

[[Page 1224]]

 Note:  Letters were sent to J. Dennis Hastert, Speaker of the House of 
Representatives; Richard A. Gephardt, House minority leader; Trent Lott, 
Senate majority leader; and Tom Daschle, Senate minority leader. An 
original was not available for verification of the content of this 
letter.